Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Nov. 30, 2017 | Jan. 12, 2018 | |
Document Information [Line Items] | ||
Entity Registrant Name | Northern Technologies International Corporation | |
Entity Central Index Key | 875,582 | |
Trading Symbol | ntic | |
Current Fiscal Year End Date | --08-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 4,537,408 | |
Document Type | 10-Q | |
Document Period End Date | Nov. 30, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Nov. 30, 2017 | Aug. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 4,627,213 | $ 6,360,201 |
Available for sale securities | 3,770,241 | 3,766,984 |
Trade excluding joint ventures, less allowance for doubtful accounts of $40,000 at November 30, 2017 and August 31, 2017 | 7,251,821 | 5,912,631 |
Trade joint ventures | 520,653 | 691,752 |
Fees for services provided to joint ventures | 1,310,818 | 1,302,944 |
Income taxes | 137,256 | |
Inventories | 7,969,328 | 7,456,552 |
Prepaid expenses | 760,567 | 439,298 |
Total current assets | 26,210,641 | 26,067,618 |
PROPERTY AND EQUIPMENT, NET | 7,235,301 | 7,359,662 |
OTHER ASSETS: | ||
Investments in joint ventures | 21,701,913 | 20,035,074 |
Deferred income taxes | 1,756,565 | 1,756,565 |
Patents and trademarks, net | 1,291,335 | 1,322,089 |
Other | 71,685 | |
Total other assets | 24,749,813 | 23,185,413 |
Total assets | 58,195,755 | 56,612,693 |
CURRENT LIABILITIES: | ||
Accounts payable | 3,797,674 | 2,676,610 |
Income taxes payable | 15,565 | |
Accrued liabilities: | ||
Payroll and related benefits | 955,903 | 1,540,386 |
Other | 1,058,793 | 677,621 |
Total current liabilities | 5,827,935 | 4,894,617 |
COMMITMENTS AND CONTINGENCIES (Note 12) | ||
EQUITY: | ||
Preferred stock, no par value; authorized 10,000 shares; none issued and outstanding | ||
Common stock, $0.02 par value per share; authorized 10,000,000 shares; issued and outstanding 4,537,408 and 4,535,018, respectively | 90,748 | 90,700 |
Additional paid-in capital | 14,294,584 | 14,163,509 |
Retained earnings | 37,706,367 | 37,077,483 |
Accumulated other comprehensive loss | (2,518,243) | (2,471,064) |
Stockholders’ equity | 49,573,456 | 48,860,628 |
Non-controlling interest | 2,794,364 | 2,857,448 |
Total equity | 52,367,820 | 51,718,076 |
Total liabilities and equity | $ 58,195,755 | $ 56,612,693 |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Nov. 30, 2017 | Aug. 31, 2017 |
Trade allowance | $ 40,000 | $ 40,000 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 10,000 | 10,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.02 | $ 0.02 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 4,537,408 | 4,535,018 |
Common stock, shares outstanding (in shares) | 4,537,408 | 4,535,018 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | ||
NET SALES: | |||
Net sales, excluding joint ventures | $ 11,035,407 | $ 9,000,224 | |
Net sales, to joint ventures | 507,631 | 701,799 | |
Total net sales | 11,543,038 | 9,702,023 | |
Cost of goods sold | 7,888,470 | 6,612,766 | [1] |
Gross profit | 3,654,568 | 3,089,257 | |
JOINT VENTURE OPERATIONS: | |||
Equity in income from joint ventures | 1,741,328 | 1,274,004 | |
Fees for services provided to joint ventures | 1,507,142 | 1,315,591 | |
Total joint venture operations | 3,248,470 | 2,589,595 | |
OPERATING EXPENSES: | |||
Selling expenses | 2,599,949 | 2,039,084 | |
General and administrative expenses | 2,219,745 | 2,471,780 | |
Research and development expenses | 798,731 | 642,522 | |
Total operating expenses | 5,618,425 | 5,153,386 | |
OPERATING INCOME | 1,284,613 | 525,466 | |
INTEREST INCOME | 24,056 | 3,563 | |
INTEREST EXPENSE | (5,089) | (4,623) | |
INCOME BEFORE INCOME TAX EXPENSE | 1,303,580 | 524,406 | |
INCOME TAX EXPENSE | 104,991 | 117,713 | |
NET INCOME | 1,198,589 | 406,693 | |
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | 114,963 | 109,054 | |
NET INCOME ATTRIBUTABLE TO NTIC | $ 1,083,626 | $ 297,639 | |
NET INCOME ATTRIBUTABLE TO NTIC PER COMMON SHARE: | |||
Basic (in dollars per share) | $ 0.24 | $ 0.07 | |
Diluted (in dollars per share) | $ 0.24 | $ 0.07 | |
WEIGHTED AVERAGE COMMON SHARES ASSUMED OUTSTANDING: | |||
Basic (in shares) | 4,537,368 | 4,531,950 | |
Diluted (in shares) | 4,608,788 | 4,558,878 | |
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) | $ 0.10 | $ 0 | |
[1] | The percent of segment sales is calculated by dividing the direct cost of goods sold for each individual segment category by the net sales for each segment category. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
NET INCOME | $ 1,198,589 | $ 406,693 |
Other comprehensive LOSS– foreign currency translation adjustment | (25,226) | (1,250,812) |
COMPREHENSIVE INCOME (LOSS) | 1,173,363 | (844,119) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NON-CONTROLLING INTERESTS | 136,916 | 60,372 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NTIC | $ 1,036,447 | $ (904,491) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 1,198,589 | $ 406,693 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Stock-based compensation | 103,267 | 97,916 |
Depreciation expense | 208,486 | 193,896 |
Amortization expense | 62,177 | 29,759 |
Equity in income from joint ventures | (1,741,328) | (1,274,004) |
Deferred income taxes | 25,242 | |
Dividends received from joint ventures | 63,937 | |
Receivables: | ||
Trade, excluding joint ventures | (1,364,409) | (762,525) |
Trade, joint ventures | 171,099 | 91,385 |
Fees for services provided to joint ventures | (7,874) | (15,518) |
Income taxes | (101,908) | 84,922 |
Inventories | (530,401) | 274,437 |
Prepaid expenses and other | (250,280) | (180,021) |
Accounts payable | 1,278,940 | 378,397 |
Income tax payable | 102,618 | (102,314) |
Accrued liabilities | (622,696) | (172,691) |
Net cash used in operating activities | (1,429,783) | (924,426) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to property and equipment | (87,250) | (112,589) |
Proceeds from the sale of available for sale securities | 497,896 | |
Purchase of available for sale securities | (3,257) | |
Additions to patents | (31,423) | (58,202) |
Net cash (used in) provided by investing activities | (121,930) | 327,105 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Dividend received by non-controlling interest | (200,000) | (200,000) |
Repurchase of common stock | (71,712) | |
Proceeds from option exercises | 15,375 | |
Proceeds from employee stock purchase plan | 12,481 | 32,955 |
Net cash used in financing activities | (172,144) | (238,757) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS: | (9,131) | (30,056) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (1,732,988) | (866,134) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 6,360,201 | 3,395,274 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 4,627,213 | $ 2,529,140 |
Note 1 - Interim Financial Info
Note 1 - Interim Financial Information | 3 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. In the opinion of management, the accompanying unaudited consolidated financial statements contain all necessary adjustments, which are of a normal recurring nature, and present fairly the consolidated financial position of Northern Technologies International Corporation and its subsidiaries (the Company) as of November 30, 2017 August 31, 2017 three November 30, 2017 2016 three November 30, 2017 2016, These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s annual report on Form 10 August 31, 2017. Operating results for the three November 30, 2017 not may August 31, 2018. The Company evaluates events occurring after the date of the consolidated financial statements requiring recording or disclosure in the consolidated financial statements. |
Note 2 - Accounting Pronounceme
Note 2 - Accounting Pronouncements | 3 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | 2. Accounting PronouncementS New Accounting Pronouncements Adopted In July 2015, No. 2015 11, Inventory first first first 2018 not In March 2016, No. 2016 07, Investments – Equity Method and Joint Ventures (Topic 323 2016 07 no first 2018 not In March 2016, 2016 09, Stock Compensation (Topic 718 first 2018. not Recently Issued Accounting Pronouncements In May 2014, Revenue from Contracts with Customers, Topic 606 No. 2014 09 2018. July 2015, one first 2019. 2014 09 During February 2016, No. 2016 02, Leases No. 2016 02 12 No. 2016 02 December 15, 2018, first 2020. No. 2016 02 In August 2016, No. 2016 15, Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments. 2016 15 zero 2016 15 December 15, 2017. 2016 15 not Although there are several other new accounting pronouncements issued or proposed by the FASB, which the Company has adopted or will adopt, as applicable, the Company does not |
Note 3 - Inventories
Note 3 - Inventories | 3 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 3. Inventories consisted of the following: November 30, 2017 August 31, 2017 Production materials $ 1,851,735 $ 1,747,189 Finished goods 6,117,593 5,709,363 $ 7,969,328 $ 7,456,552 |
Note 4 - Property and Equipment
Note 4 - Property and Equipment, Net | 3 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 4. Property and equipment, net consisted of the following: November 30, 2017 August 31, 2017 Land $ 310,365 $ 310,365 Buildings and improvements 6,855,488 6,847,177 Machinery and equipment 4,246,967 4,171,387 11,412,820 11,328,929 Less accumulated depreciation (4,177,519 ) (3,969,267 ) $ 7,235,301 $ 7,359,662 |
Note 5 - Patents and Trademarks
Note 5 - Patents and Trademarks, Net | 3 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | 5. Patents and trademarks, net consisted of the following: November 30, 2017 August 31, 2017 Patents and trademarks $ 2,769,382 $ 2,737,959 Less accumulated amortization (1,478,047 ) (1,415,870 ) $ 1,291,335 $ 1,322,089 Patent and trademark costs are amortized over seven $240,000 five |
Note 6 - Investments in Joint V
Note 6 - Investments in Joint Ventures | 3 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 6. The financial statements of the Company’s foreign joint ventures are initially prepared using the accounting principles accepted in the respective joint ventures’ countries of domicile. Amounts related to foreign joint ventures reported in the below tables and the accompanying consolidated financial statements have subsequently been adjusted to conform with U.S. GAAP in all material respects. All material profits recorded that remain on the balance sheet on sales from the Company to its joint ventures and from joint ventures to other joint ventures have been eliminated for financial reporting purposes. Financial information from the audited and unaudited financial statements of the Company’s joint ventures in Germany, Excor Korrosionsschutz – Technologien und Produkte GmbH (EXCOR) and all the Company’s other joint ventures, are summarized as follows: As of November 30, 2017 Total EXCOR All Other Current assets $ 57,249,505 $ 25,234,973 $ 32,014,532 Total assets 61,290,726 27,337,417 33,953,309 Current liabilities 17,410,457 4,987,804 12,422,653 Noncurrent liabilities 184,251 — 184,251 Joint ventures’ equity 43,696,018 22,349,613 21,346,405 Northern Technologies International Corporation’s share of joint ventures’ equity 21,701,913 11,174,808 10,527,105 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings $ 19,590,029 $ 11,143,903 $ 8,446,126 Northern Technologies International Corporation's dividends received from joint ventures $ 63,937 $ — $ 63,937 Three Months Ended November 30, 2017 Total EXCOR All Other Net sales $ 28,498,711 $ 11,026,514 $ 17,472,197 Gross profit 12,788,122 5,933,526 6,854,596 Net income 3,499,815 2,483,800 1,016,015 Northern Technologies International Corporation’s share of equity in income from joint ventures $ 1,741,328 $ 1,241,900 $ 499,428 As of August 31, 2017 Total EXCOR All Other Current assets $ 51,518,210 $ 22,142,514 $ 29,375,696 Total assets 55,633,891 24,301,194 31,332,697 Current liabilities 15,118,074 4,469,567 10,648,507 Noncurrent liabilities 181,210 — 181,210 Joint ventures’ equity 40,334,607 19,831,627 20,502,980 Northern Technologies International Corporation’s share of joint ventures’ equity 20,035,074 9,915,816 10,119,258 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings 17,960,860 9,884,911 8,075,949 Northern Technologies International Corporation's dividends received from joint ventures $ 6,377,054 $ 5,379,062 $ 997,992 Three Months Ended November 30, 2016 Total EXCOR All Other Net sales $ 24,200,447 $ 9,208,524 $ 14,991,923 Gross profit 10,697,027 4,894,179 5,802,848 Net income 2,408,008 1,856,338 551,670 Northern Technologies International Corporation’s share of equity in income from joint ventures $ 1,274,004 $ 928,169 $ 345,835 The Company did not three November 30, 2017 2016. |
Note 7 - Corporate Debt
Note 7 - Corporate Debt | 3 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 7. The Company has a revolving line of credit with PNC Bank, National Association (PNC Bank) of $3,000,000. No November 30, 2017 August 31, 2017. 2.15% The line of credit is governed under a loan agreement. The loan agreement contains standard covenants, including affirmative financial covenants, such as the maintenance of a minimum fixed charge coverage ratio, and negative covenants, which, among other things, limit the incurrence of additional indebtedness, loans and equity investments, disposition of assets, mergers and consolidations and other matters customarily restricted in such agreements. Under the loan agreement, the Company is subject to a minimum fixed charge coverage ratio of 1.10:1.00. November 30, 2017, The revolving credit facility allows the Company to request that PNC Bank issue letters of credit up to $1,200,000. not November 30, 2017 August 31, 2017 not As of November 30, 2017 August 31, 2017, $88,831 $89,543, 2020 2022. On January 5, 2018, January 7, 2019. |
Note 8 - Stockholders' Equity
Note 8 - Stockholders' Equity | 3 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 8. On November 20, 2017, $0.10 December 21, 2017 December 8, 2017 During the three November 30, 2017, no three November 30, 2017, 1,500 $10.25 The Company granted stock options under the Northern Technologies International Corporation Amended and Restated 2007 2007 47,252 three November 30, 2017. $18.35, During the three November 30, 2016, 5,575 $12.87 No three November 30, 2016. The Company issued 891 3,029 September 1, 2017 2016, The Company granted stock options under the 2007 56,677 three November 30, 2016. $13.40, |
Note 9 - Net Income Per Common
Note 9 - Net Income Per Common Share | 3 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 9. Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted net income per share assumes the exercise of stock options using the treasury stock method, if dilutive. The following is a reconciliation of the earnings per share computation for the three November 30, 2017 2016: Three Months Ended Numerator: November 30, 2017 November 30, 2016 Net income attributable to NTIC $ 1,083,626 $ 297,639 Denominator: Basic – weighted shares outstanding 4,537,368 4,531,950 Weighted shares assumed upon exercise of stock options 71,420 26,928 Diluted – weighted shares outstanding 4,608,788 4,558,878 Basic earnings per share: $ 0.24 $ 0.07 Diluted earnings per share: $ 0.24 $ 0.07 The dilutive impact summarized above relates to the periods when the average market price of the Company’s common stock exceeded the exercise price of the potentially dilutive option securities granted. Earnings per common share were based on the weighted average number of common shares outstanding during the periods when computing the basic earnings per share. When dilutive, stock options are included as equivalents using the treasury stock market method when computing the diluted earnings per share. Excluded from the computation of diluted income per share for the three November 30, 2017 92,319 three November 30, 2016 211,564 |
Note 10 - Stock-based Compensat
Note 10 - Stock-based Compensation | 3 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 10. The Company has two 2007 The 2007 2007 800,000 2007 2007 ten three four one November 30, 2017, 2007 The maximum number of shares of common stock of the Company available for issuance under the ESPP is 100,000 six September 1 March 1 90% may not 423 1986, The Company granted options to purchase an aggregate of 47,252 56,677 three November 30, 2017 2016, $103,267 $97,916 three November 30, 2017 2016, November 30, 2017, not $528,936, $309,801 2018, $153,901 $65,234 2019 2020, November 30, 2017. The fair value of each option grant is estimated on the grant date using the Black-Scholes option pricing model with the following assumptions and results for the grants: November 30, 2017 2016 Dividend yield 2.18% 0.00% Expected volatility 45.9% 46.4% Expected life of option (in years) 10 10 Average risk-free interest rate 1.87% 1.63% The weighted average per share fair value of options granted during the three November 30, 2017 2016 $7.75 $7.69, November 30, 2017 2016 6.95 7.15 |
Note 11 - Segment and Geographi
Note 11 - Segment and Geographical Information | 3 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 11. Segment Information The Company’s chief operating decision maker (CODM) is its Chief Executive Officer. The Company’s business is organized into two 40 The following table sets forth the Company’s net sales for the three November 30, 2017 2016 Three Months Ended November 30, 2017 November 30, 2016 ZERUST® net sales $ 9,527,737 $ 8,084,678 Natur-Tec® net sales 2,015,301 1,617,345 Total net sales $ 11,543,038 $ 9,702,023 The following table sets forth the Company’s cost of goods sold for the three November 30, 2017 2016 November 30, % of November 30, % of Direct cost of goods sold ZERUST® $ 5,803,980 60.9% $ 4,699,537 58.1% Natur-Tec® 1,479,199 73.4% 1,213,168 75.0% Indirect cost of goods sold 605,291 NA 700,061 NA Total net cost of goods sold $ 7,888,470 $ 6,612,766 * The percent of segment sales is calculated by dividing the direct cost of goods sold for each individual segment category by the net sales for each segment category. The Company utilizes product net sales and direct and indirect cost of goods sold for each product in reviewing the financial performance of a product type. Further allocation of Company expenses or assets, aside from amounts presented in the tables above, is not Geographic Information Net sales by geographic location for the three November 30, 2017 2016 Three Months Ended November 30, 2017 November 30, 2016 Inside the U.S.A. to unaffiliated customers $ 6,256,205 $ 5,268,999 Outside the U.S.A. to: Joint ventures in which the Company is a shareholder directly and indirectly 507,631 701,799 Unaffiliated customers 4,779,202 3,731,225 $ 11,543,038 $ 9,702,023 Net sales by geographic location are based on the location of the customer. Fees for services provided to joint ventures by geographic location as a percentage of total fees for services provided to joint ventures during the three November 30, 2017 2016 Three Months Ended November 30, % of Total Fees November 30, % of Total Fees for Germany $ 219,873 14.6 % $ 203,000 15.4 % Poland 206,076 13.7 % 149,204 11.3 % Japan 174,045 11.5 % 146,037 11.1 % France 139,641 9.3 % 97,673 7.4 % Sweden 127,954 8.5 % 87,061 6.6 % United Kingdom 111,775 7.4 % 86,131 6.5 % Thailand 102,531 6.8 % 147,455 11.2 % Finland 89,627 5.9 % 76,336 5.8 % India 86,763 5.8 % 64,535 4.9 % Czech Republic 84,225 5.6 % 70,828 5.4 % South Korea 83,488 5.5 % 105,378 8.0 % Other 81,144 5.4 % 81,953 6.2 % $ 1,507,142 100.0 % $ 1,315,591 100.0 % The geographical distribution of key financial statement data is as follows: At November 30, 2017 At August 31, 2017 China $ 207,094 $ 228,458 Brazil 50,784 54,646 Germany 16,619 14,171 India 13,642 14,712 United States 6,947,162 7,047,675 Total property and equipment $ 7,235,301 $ 7,359,662 Three Months Ended November 30, November 30, China $ 2,911,643 $ 1,546,810 Brazil 639,841 601,524 India 495,539 331,610 Germany 48,771 118,259 Other 683,407 1,133,022 United States 6,763,837 5,970,798 Total net sales $ 11,543,038 $ 9,702,023 Total property and equipment are periodically reviewed to assure the net realizable value from the estimated future production based on forecasted sales exceeds the carrying value of the assets. Total assets located in the United States include the Company’s investments in joint ventures. Sales to the Company’s joint ventures are included in the foregoing segment and geographic information; however, sales by the Company’s joint ventures to other parties are not All joint venture operations, including equity in income, fees for services and related dividends, are primarily related to ZERUST ® |
Note 12 - Commitments and Conti
Note 12 - Commitments and Contingencies | 3 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 12. On August 31, 2017, August 31, 2018. 2018 75% 2018 2018 25% may 2018. $318,000 three November 30, 2017 $98,000 three November 30, 2016. Four joint ventures (consisting of the Company’s joint ventures in South Korea, Thailand, Indonesia and India) accounted for 93.6% November 30, 2017 three 60.7% August 31, 2017. From time to time, the Company is subject to various other claims and legal actions in the ordinary course of its business. The Company records a liability in its consolidated financial statements for costs related to claims, including future legal costs, settlements and judgments, where the Company has assessed that a loss is probable and an amount could be reasonably estimated. If the reasonable estimate of a probable loss is a range, the Company records the most probable estimate of the loss or the minimum amount when no not not may November 30, 2017, not |
Note 13 - Fair Value Measuremen
Note 13 - Fair Value Measurements | 3 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Fair Value, Measurement Inputs, Disclosure [Text Block] | 13. Fair Value Measurements Assets and liabilities that are measured at fair value on a recurring basis primarily relate to marketable equity securities. These items are marked-to-market at each reporting period, the market value approximates the cost basis. The following tables provide information by level for assets and liabilities that are measured at fair value on a recurring basis: Fair Value Measurements Using Inputs Considered as Fair value as of November 30, 2017 Level 1 Level 2 Level 3 Available for sale securities $ 3,770,241 $ 3,770,241 $ — $ — Fair Value Measurements Using Inputs Considered as Fair value as of August 31, 2017 Level 1 Level 2 Level 3 Available for sale securities $ 3,766,984 $ 3,766,984 $ — $ — The available for sale securities are mainly fixed income mutual funds. There were no 1, 2, 3 three November 30, 2017 2016. |
Note 14 - Supplemental Cash Flo
Note 14 - Supplemental Cash Flow Information | 3 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | 14. SUPPLEMENTAL CASH FLOW INFORMATION Supplemental disclosures of cash flow information consisted of: Three Months Ended November 30, November 30, Cash paid for interest $ 5,089 $ 4,623 Cash paid for income taxes — — Non-cash financing activity consisted of: Three Months Ended November 30, November 30, Dividends declared, not paid $ 454,741 — |
Note 15 - Subsequent Event
Note 15 - Subsequent Event | 3 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 15. SUBSEQUENT EVENT On December 22, 2017, 35 21 January 1, 2018. may one not second 2018. |
Note 3 - Inventories (Tables)
Note 3 - Inventories (Tables) | 3 Months Ended |
Nov. 30, 2017 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | November 30, 2017 August 31, 2017 Production materials $ 1,851,735 $ 1,747,189 Finished goods 6,117,593 5,709,363 $ 7,969,328 $ 7,456,552 |
Note 4 - Property and Equipme23
Note 4 - Property and Equipment, Net (Tables) | 3 Months Ended |
Nov. 30, 2017 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | November 30, 2017 August 31, 2017 Land $ 310,365 $ 310,365 Buildings and improvements 6,855,488 6,847,177 Machinery and equipment 4,246,967 4,171,387 11,412,820 11,328,929 Less accumulated depreciation (4,177,519 ) (3,969,267 ) $ 7,235,301 $ 7,359,662 |
Note 5 - Patents and Trademar24
Note 5 - Patents and Trademarks, Net (Tables) | 3 Months Ended |
Nov. 30, 2017 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | November 30, 2017 August 31, 2017 Patents and trademarks $ 2,769,382 $ 2,737,959 Less accumulated amortization (1,478,047 ) (1,415,870 ) $ 1,291,335 $ 1,322,089 |
Note 6 - Investments in Joint25
Note 6 - Investments in Joint Ventures (Tables) | 3 Months Ended |
Nov. 30, 2017 | |
Notes Tables | |
Condensed Balance Sheet [Table Text Block] | As of November 30, 2017 Total EXCOR All Other Current assets $ 57,249,505 $ 25,234,973 $ 32,014,532 Total assets 61,290,726 27,337,417 33,953,309 Current liabilities 17,410,457 4,987,804 12,422,653 Noncurrent liabilities 184,251 — 184,251 Joint ventures’ equity 43,696,018 22,349,613 21,346,405 Northern Technologies International Corporation’s share of joint ventures’ equity 21,701,913 11,174,808 10,527,105 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings $ 19,590,029 $ 11,143,903 $ 8,446,126 Northern Technologies International Corporation's dividends received from joint ventures $ 63,937 $ — $ 63,937 As of August 31, 2017 Total EXCOR All Other Current assets $ 51,518,210 $ 22,142,514 $ 29,375,696 Total assets 55,633,891 24,301,194 31,332,697 Current liabilities 15,118,074 4,469,567 10,648,507 Noncurrent liabilities 181,210 — 181,210 Joint ventures’ equity 40,334,607 19,831,627 20,502,980 Northern Technologies International Corporation’s share of joint ventures’ equity 20,035,074 9,915,816 10,119,258 Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings 17,960,860 9,884,911 8,075,949 Northern Technologies International Corporation's dividends received from joint ventures $ 6,377,054 $ 5,379,062 $ 997,992 |
Condensed Income Statement [Table Text Block] | Three Months Ended November 30, 2017 Total EXCOR All Other Net sales $ 28,498,711 $ 11,026,514 $ 17,472,197 Gross profit 12,788,122 5,933,526 6,854,596 Net income 3,499,815 2,483,800 1,016,015 Northern Technologies International Corporation’s share of equity in income from joint ventures $ 1,741,328 $ 1,241,900 $ 499,428 Three Months Ended November 30, 2016 Total EXCOR All Other Net sales $ 24,200,447 $ 9,208,524 $ 14,991,923 Gross profit 10,697,027 4,894,179 5,802,848 Net income 2,408,008 1,856,338 551,670 Northern Technologies International Corporation’s share of equity in income from joint ventures $ 1,274,004 $ 928,169 $ 345,835 |
Note 9 - Net Income Per Commo26
Note 9 - Net Income Per Common Share (Tables) | 3 Months Ended |
Nov. 30, 2017 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Numerator: November 30, 2017 November 30, 2016 Net income attributable to NTIC $ 1,083,626 $ 297,639 Denominator: Basic – weighted shares outstanding 4,537,368 4,531,950 Weighted shares assumed upon exercise of stock options 71,420 26,928 Diluted – weighted shares outstanding 4,608,788 4,558,878 Basic earnings per share: $ 0.24 $ 0.07 Diluted earnings per share: $ 0.24 $ 0.07 |
Note 10 - Stock-based Compens27
Note 10 - Stock-based Compensation (Tables) | 3 Months Ended |
Nov. 30, 2017 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | November 30, 2017 2016 Dividend yield 2.18% 0.00% Expected volatility 45.9% 46.4% Expected life of option (in years) 10 10 Average risk-free interest rate 1.87% 1.63% |
Note 11 - Segment and Geograp28
Note 11 - Segment and Geographical Information (Tables) | 3 Months Ended |
Nov. 30, 2017 | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three Months Ended November 30, 2017 November 30, 2016 ZERUST® net sales $ 9,527,737 $ 8,084,678 Natur-Tec® net sales 2,015,301 1,617,345 Total net sales $ 11,543,038 $ 9,702,023 |
Reconciliation of Cost of Goods Sold from Segments to Consolidated [Table Text Block] | November 30, % of November 30, % of Direct cost of goods sold ZERUST® $ 5,803,980 60.9% $ 4,699,537 58.1% Natur-Tec® 1,479,199 73.4% 1,213,168 75.0% Indirect cost of goods sold 605,291 NA 700,061 NA Total net cost of goods sold $ 7,888,470 $ 6,612,766 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Three Months Ended November 30, 2017 November 30, 2016 Inside the U.S.A. to unaffiliated customers $ 6,256,205 $ 5,268,999 Outside the U.S.A. to: Joint ventures in which the Company is a shareholder directly and indirectly 507,631 701,799 Unaffiliated customers 4,779,202 3,731,225 $ 11,543,038 $ 9,702,023 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | At November 30, 2017 At August 31, 2017 China $ 207,094 $ 228,458 Brazil 50,784 54,646 Germany 16,619 14,171 India 13,642 14,712 United States 6,947,162 7,047,675 Total property and equipment $ 7,235,301 $ 7,359,662 |
Revenue from External Customers by Geographic Areas [Table Text Block] | Three Months Ended November 30, November 30, China $ 2,911,643 $ 1,546,810 Brazil 639,841 601,524 India 495,539 331,610 Germany 48,771 118,259 Other 683,407 1,133,022 United States 6,763,837 5,970,798 Total net sales $ 11,543,038 $ 9,702,023 |
Fees for Services Provided to Joint Ventures [Member] | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three Months Ended November 30, % of Total Fees November 30, % of Total Fees for Germany $ 219,873 14.6 % $ 203,000 15.4 % Poland 206,076 13.7 % 149,204 11.3 % Japan 174,045 11.5 % 146,037 11.1 % France 139,641 9.3 % 97,673 7.4 % Sweden 127,954 8.5 % 87,061 6.6 % United Kingdom 111,775 7.4 % 86,131 6.5 % Thailand 102,531 6.8 % 147,455 11.2 % Finland 89,627 5.9 % 76,336 5.8 % India 86,763 5.8 % 64,535 4.9 % Czech Republic 84,225 5.6 % 70,828 5.4 % South Korea 83,488 5.5 % 105,378 8.0 % Other 81,144 5.4 % 81,953 6.2 % $ 1,507,142 100.0 % $ 1,315,591 100.0 % |
Note 13 - Fair Value Measurem29
Note 13 - Fair Value Measurements (Tables) | 3 Months Ended |
Nov. 30, 2017 | |
Notes Tables | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] | Fair Value Measurements Using Inputs Considered as Fair value as of November 30, 2017 Level 1 Level 2 Level 3 Available for sale securities $ 3,770,241 $ 3,770,241 $ — $ — Fair Value Measurements Using Inputs Considered as Fair value as of August 31, 2017 Level 1 Level 2 Level 3 Available for sale securities $ 3,766,984 $ 3,766,984 $ — $ — |
Note 14 - Supplemental Cash F30
Note 14 - Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Nov. 30, 2017 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Three Months Ended November 30, November 30, Cash paid for interest $ 5,089 $ 4,623 Cash paid for income taxes — — Three Months Ended November 30, November 30, Dividends declared, not paid $ 454,741 — |
Note 3 - Inventories - Inventor
Note 3 - Inventories - Inventories (Details) - USD ($) | Nov. 30, 2017 | Aug. 31, 2017 |
Production materials | $ 1,851,735 | $ 1,747,189 |
Finished goods | 6,117,593 | 5,709,363 |
Total inventory | $ 7,969,328 | $ 7,456,552 |
Note 4 - Property and Equipme32
Note 4 - Property and Equipment, Net - Components of Property and Equipment, Net (Details) - USD ($) | Nov. 30, 2017 | Aug. 31, 2017 |
Land | $ 310,365 | $ 310,365 |
Buildings and improvements | 6,855,488 | 6,847,177 |
Machinery and equipment | 4,246,967 | 4,171,387 |
Gross | 11,412,820 | 11,328,929 |
Less accumulated depreciation | (4,177,519) | (3,969,267) |
Net | $ 7,235,301 | $ 7,359,662 |
Note 5 - Patents and Trademar33
Note 5 - Patents and Trademarks, Net (Details Textual) - Patents and Trademarks [Member] | 3 Months Ended |
Nov. 30, 2017USD ($) | |
Finite-Lived Intangible Asset, Useful Life | 7 years |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 240,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 240,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 240,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 240,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | $ 240,000 |
Note 5 - Patents and Trademar34
Note 5 - Patents and Trademarks, Net - Patents and Trademarks, Net (Details) - USD ($) | Nov. 30, 2017 | Aug. 31, 2017 |
Patents and trademarkes, net | $ 1,291,335 | $ 1,322,089 |
Patents and Trademarks [Member] | ||
Patents and trademarks | 2,769,382 | 2,737,959 |
Less accumulated amortization | (1,478,047) | (1,415,870) |
Patents and trademarkes, net | $ 1,291,335 | $ 1,322,089 |
Note 6 - Investments in Joint35
Note 6 - Investments in Joint Ventures (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Payments to Acquire Interest in Joint Venture | $ 0 | $ 0 |
Note 6 - Investments in Joint36
Note 6 - Investments in Joint Ventures - Condensed Balance Sheet of EXCOR and All Other Joint Ventures (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Nov. 30, 2017 | Aug. 31, 2017 | |
Current assets | $ 57,249,505 | $ 51,518,210 |
Total assets | 61,290,726 | 55,633,891 |
Current liabilities | 17,410,457 | 15,118,074 |
Noncurrent liabilities | 184,251 | 181,210 |
Joint ventures’ equity | 43,696,018 | 40,334,607 |
Northern Technologies International Corporation’s share of joint ventures’ equity | 21,701,913 | 20,035,074 |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings | 19,590,029 | 17,960,860 |
Northern Technologies International Corporation's dividends received from joint ventures | 63,937 | 6,377,054 |
EXCOR [Member] | ||
Current assets | 25,234,973 | 22,142,514 |
Total assets | 27,337,417 | 24,301,194 |
Current liabilities | 4,987,804 | 4,469,567 |
Noncurrent liabilities | ||
Joint ventures’ equity | 22,349,613 | 19,831,627 |
Northern Technologies International Corporation’s share of joint ventures’ equity | 11,174,808 | 9,915,816 |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings | 11,143,903 | 9,884,911 |
Northern Technologies International Corporation's dividends received from joint ventures | 5,379,062 | |
Joint Venture in India [Member] | ||
Current assets | 32,014,532 | 29,375,696 |
Total assets | 33,953,309 | 31,332,697 |
Current liabilities | 12,422,653 | 10,648,507 |
Noncurrent liabilities | 184,251 | 181,210 |
Joint ventures’ equity | 21,346,405 | 20,502,980 |
Northern Technologies International Corporation’s share of joint ventures’ equity | 10,527,105 | 10,119,258 |
Northern Technologies International Corporation’s share of joint ventures’ undistributed earnings | 8,446,126 | 8,075,949 |
Northern Technologies International Corporation's dividends received from joint ventures | $ 63,937 | $ 997,992 |
Note 6 - Investments in Joint37
Note 6 - Investments in Joint Ventures - Condensed Income Statement of EXCOR and All Other Joint Ventures (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Net sales | $ 28,498,711 | $ 24,200,447 |
Gross profit | 12,788,122 | 10,697,027 |
Net income | 3,499,815 | 2,408,008 |
Equity in income from joint ventures | 1,741,328 | 1,274,004 |
EXCOR [Member] | ||
Net sales | 11,026,514 | 9,208,524 |
Gross profit | 5,933,526 | 4,894,179 |
Net income | 2,483,800 | 1,856,338 |
Equity in income from joint ventures | 1,241,900 | 928,169 |
Joint Venture in India [Member] | ||
Net sales | 17,472,197 | 14,991,923 |
Gross profit | 6,854,596 | 5,802,848 |
Net income | 1,016,015 | 551,670 |
Equity in income from joint ventures | $ 499,428 | $ 345,835 |
Note 7 - Corporate Debt (Detail
Note 7 - Corporate Debt (Details Textual) | 3 Months Ended | |
Nov. 30, 2017USD ($) | Aug. 31, 2017USD ($) | |
Term Loan and Line of Credit, Agreements, Loan Agreements [Member] | ||
Debt Instrument, Covenants, Fixed Charge Coverage Ratio | 1.1 | |
PNC Bank [Member] | ||
Letters of Credit Outstanding, Amount | $ 0 | $ 0 |
PNC Bank [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 3,000,000 | |
Long-term Line of Credit | $ 0 | 0 |
PNC Bank [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.15% | |
PNC Bank [Member] | Letter of Credit [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,200,000 | |
JP Morgan Chase Bank [Member] | ||
Letters of Credit Outstanding, Amount | $ 88,831 | $ 89,543 |
Note 8 - Stockholders' Equity (
Note 8 - Stockholders' Equity (Details Textual) - $ / shares | Nov. 20, 2017 | Sep. 01, 2017 | Sep. 01, 2016 | Nov. 30, 2017 | Nov. 30, 2016 |
Common Stock, Dividends, Per Share, Declared | $ 0.10 | $ 0.10 | $ 0 | ||
Stock Repurchased and Retired During Period, Shares | 0 | 5,575 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 1,500 | 0 | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 10.25 | ||||
Treasury Stock Acquired, Average Cost Per Share | $ 12.87 | ||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 891 | 3,029 | |||
Dividends Payable, Date to be Paid | Dec. 21, 2017 | ||||
Dividends Payable, Date of Record | Dec. 8, 2017 | ||||
The 2007 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 47,252 | 56,677 | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 18.35 | $ 13.40 |
Note 9 - Net Income Per Commo40
Note 9 - Net Income Per Common Share (Details Textual) - shares | 3 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 92,319 | 211,564 |
Note 9 - Net Income Per Commo41
Note 9 - Net Income Per Common Share - Reconciliation of the Earnings Per Share Computations (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Net income attributable to NTIC | $ 1,083,626 | $ 297,639 |
Basic – weighted shares outstanding (in shares) | 4,537,368 | 4,531,950 |
Weighted shares assumed upon exercise of stock options (in shares) | 71,420 | 26,928 |
Diluted – weighted shares outstanding (in shares) | 4,608,788 | 4,558,878 |
Basic earnings per share: (in dollars per share) | $ 0.24 | $ 0.07 |
Diluted earnings per share: (in dollars per share) | $ 0.24 | $ 0.07 |
Note 10 - Stock-based Compens42
Note 10 - Stock-based Compensation (Details Textual) | 3 Months Ended | |
Nov. 30, 2017USD ($)$ / sharesshares | Nov. 30, 2016USD ($)$ / sharesshares | |
Number of Stock-based Compensation Plans | 2 | |
Stock or Unit Option Plan Expense | $ 103,267 | $ 97,916 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 528,936 | |
Allocated Share-based Compensation Expense, Estimate Remainder of Fiscal Year | 309,801 | |
Allocated Share-based Compensation Expense, Estimate, Next Fiscal Year | 153,901 | |
Allocated Share-based Compensation Expense, Estimate, Fiscal Year Two | $ 65,234 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 7.75 | $ 7.69 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years 346 days | 7 years 54 days |
The 2007 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | shares | 800,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 47,252 | 56,677 |
The 2007 Plan [Member] | One Year after Date of Grant [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
The 2007 Plan [Member] | One Year after Date of Grant [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |
ESPP [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | shares | 100,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 90.00% |
Note 10 - Stock-based Compens43
Note 10 - Stock-based Compensation - Black-scholes Option-pricing Model Assumptions (Details) | 3 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Dividend yield | 2.18% | 0.00% |
Expected volatility | 45.90% | 46.40% |
Expected life of option (Year) | 10 years | 10 years |
Average risk-free interest rate | 1.87% | 1.63% |
Note 11 - Segment and Geograp44
Note 11 - Segment and Geographical Information (Details Textual) | 3 Months Ended |
Nov. 30, 2017 | |
Number of Reportable Segments | 2 |
Note 11 - Segment and Geograp45
Note 11 - Segment and Geographical Information - Net Sales by Segment (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Net sales by segment | $ 11,543,038 | $ 9,702,023 |
ZERUST [Member] | ||
Net sales by segment | 9,527,737 | 8,084,678 |
NaturTec [Member] | ||
Net sales by segment | $ 2,015,301 | $ 1,617,345 |
Note 11 - Segment and Geograp46
Note 11 - Segment and Geographical Information - Cost of Goods Sold by Segment (Details) - USD ($) | 3 Months Ended | |||
Nov. 30, 2017 | Nov. 30, 2016 | |||
Cost of goods sold | $ 7,888,470 | $ 6,612,766 | [1] | |
Precentage of product sales | [1] | |||
Direct Cost of Goods Sold [Member] | ZERUST [Member] | ||||
Cost of goods sold | $ 5,803,980 | $ 4,699,537 | [1] | |
Precentage of product sales | [1] | 60.90% | 58.10% | |
Direct Cost of Goods Sold [Member] | NaturTec [Member] | ||||
Cost of goods sold | $ 1,479,199 | $ 1,213,168 | [1] | |
Precentage of product sales | [1] | 73.40% | 75.00% | |
Indirect Cost of Goods Sold [Member] | ||||
Cost of goods sold | $ 605,291 | $ 700,061 | [1] | |
Precentage of product sales | [1] | |||
[1] | The percent of segment sales is calculated by dividing the direct cost of goods sold for each individual segment category by the net sales for each segment category. |
Note 11 - Segment and Geograp47
Note 11 - Segment and Geographical Information - Net Sales by Geographic Location (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Net sales by segment | $ 11,543,038 | $ 9,702,023 |
Inside the USA to Unaffiliated Customers [Member] | ||
Net sales by segment | 6,256,205 | 5,268,999 |
Joint Ventures in Which the Company is a Shareholder Directly and Indirectly Outside the USA [Member] | ||
Net sales by segment | 507,631 | 701,799 |
Unaffiliated Customers Outside the USA [Member] | ||
Net sales by segment | $ 4,779,202 | $ 3,731,225 |
Note 11 - Segment and Geograp48
Note 11 - Segment and Geographical Information - Fees for Services Provided to Joint Ventures by Geographic Location as a Percentage of Total Fees (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Fees | $ 1,507,142 | $ 1,315,591 |
Percentage of total fees | 100.00% | 100.00% |
Fees | $ 1,507,142 | $ 1,315,591 |
Percentage of total fees | 100.00% | 100.00% |
GERMANY | ||
Fees | $ 219,873 | $ 203,000 |
Percentage of total fees | 14.60% | 15.40% |
Fees | $ 219,873 | $ 203,000 |
Percentage of total fees | 14.60% | 15.40% |
POLAND | ||
Fees | $ 206,076 | $ 149,204 |
Percentage of total fees | 13.70% | 11.30% |
Fees | $ 206,076 | $ 149,204 |
Percentage of total fees | 13.70% | 11.30% |
JAPAN | ||
Fees | $ 174,045 | $ 146,037 |
Percentage of total fees | 11.50% | 11.10% |
Fees | $ 174,045 | $ 146,037 |
Percentage of total fees | 11.50% | 11.10% |
FRANCE | ||
Fees | $ 139,641 | $ 97,673 |
Percentage of total fees | 9.30% | 7.40% |
Fees | $ 139,641 | $ 97,673 |
Percentage of total fees | 9.30% | 7.40% |
SWEDEN | ||
Fees | $ 127,954 | $ 87,061 |
Percentage of total fees | 8.50% | 6.60% |
Fees | $ 127,954 | $ 87,061 |
Percentage of total fees | 8.50% | 6.60% |
UNITED KINGDOM | ||
Fees | $ 111,775 | $ 86,131 |
Percentage of total fees | 7.40% | 6.50% |
Fees | $ 111,775 | $ 86,131 |
Percentage of total fees | 7.40% | 6.50% |
THAILAND | ||
Fees | $ 102,531 | $ 147,455 |
Percentage of total fees | 6.80% | 11.20% |
Fees | $ 102,531 | $ 147,455 |
Percentage of total fees | 6.80% | 11.20% |
FINLAND | ||
Fees | $ 89,627 | $ 76,336 |
Percentage of total fees | 5.90% | 5.80% |
Fees | $ 89,627 | $ 76,336 |
Percentage of total fees | 5.90% | 5.80% |
INDIA | ||
Fees | $ 86,763 | $ 64,535 |
Percentage of total fees | 5.80% | 4.90% |
Fees | $ 86,763 | $ 64,535 |
Percentage of total fees | 5.80% | 4.90% |
CZECH REPUBLIC | ||
Fees | $ 84,225 | $ 70,828 |
Percentage of total fees | 5.60% | 5.40% |
Fees | $ 84,225 | $ 70,828 |
Percentage of total fees | 5.60% | 5.40% |
KOREA, REPUBLIC OF | ||
Fees | $ 83,488 | $ 105,378 |
Percentage of total fees | 5.50% | 8.00% |
Fees | $ 83,488 | $ 105,378 |
Percentage of total fees | 5.50% | 8.00% |
Other Countries [Member] | ||
Fees | $ 81,144 | $ 81,953 |
Percentage of total fees | 5.40% | 6.20% |
Fees | $ 81,144 | $ 81,953 |
Percentage of total fees | 5.40% | 6.20% |
Note 11 - Segment and Geograp49
Note 11 - Segment and Geographical Information - Total Long-lived Assets by Geographic Distribution (Details) - USD ($) | Nov. 30, 2017 | Aug. 31, 2017 |
Total long-lived assets | $ 7,235,301 | $ 7,359,662 |
CHINA | ||
Total long-lived assets | 207,094 | 228,458 |
BRAZIL | ||
Total long-lived assets | 50,784 | 54,646 |
GERMANY | ||
Total long-lived assets | 16,619 | 14,171 |
INDIA | ||
Total long-lived assets | 13,642 | 14,712 |
UNITED STATES | ||
Total long-lived assets | $ 6,947,162 | $ 7,047,675 |
Note 11 - Segment and Geograp50
Note 11 - Segment and Geographical Information - Total Net Sales by Geographic Distribution (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Net sales by segment | $ 11,543,038 | $ 9,702,023 |
CHINA | ||
Net sales by segment | 2,911,643 | 1,546,810 |
BRAZIL | ||
Net sales by segment | 639,841 | 601,524 |
INDIA | ||
Net sales by segment | 495,539 | 331,610 |
GERMANY | ||
Net sales by segment | 48,771 | 118,259 |
Other Countries [Member] | ||
Net sales by segment | 683,407 | 1,133,022 |
UNITED STATES | ||
Net sales by segment | $ 6,763,837 | $ 5,970,798 |
Note 12 - Commitments and Con51
Note 12 - Commitments and Contingencies (Details Textual) - USD ($) | 3 Months Ended | ||
Nov. 30, 2017 | Aug. 31, 2017 | Nov. 30, 2016 | |
Accrued Bonuses | $ 318,000 | $ 98,000 | |
Entity Wide Trade Joint Venture Receivables, Four Joint Ventures,Percentage | 93.60% | ||
Entity Wide Trade Joint Venture Receivables, Three Joint Ventures,Percentage | 60.70% | ||
Fiscal 2018 Bonus Plan [Member] | Executive Officer [Member] | |||
Percentage of Individual Bonus Payout Determined by Actual Versus Targeted EBITOI Results | 75.00% | ||
Percentage of Individuals Payout Determined Upon Achievement of Certain Pre-Established Individual Performance Objectives | 25.00% |
Note 13 - Fair Value Measurem52
Note 13 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value Recurring Basis (Details) - USD ($) | Nov. 30, 2017 | Aug. 31, 2017 |
Available for sale securities | $ 3,770,241 | $ 3,766,984 |
Fair Value, Inputs, Level 1 [Member] | ||
Available for sale securities | 3,770,241 | 3,766,984 |
Fair Value, Inputs, Level 2 [Member] | ||
Available for sale securities | ||
Fair Value, Inputs, Level 3 [Member] | ||
Available for sale securities |
Note 14 - Supplemental Cash F53
Note 14 - Supplemental Cash Flow Information - Supplemental Disclosures of Cash Flow Information (Details) - USD ($) | 3 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Cash paid for interest | $ 5,089 | $ 4,623 |
Cash paid for income taxes | ||
Dividends declared, not paid | $ 454,741 |
Note 15 - Subsequent Event (Det
Note 15 - Subsequent Event (Details Textual) | Jan. 01, 2018 | Dec. 31, 2017 |
Subsequent Event [Member] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% |